Tax savings under income tax act 1961 u/s 80. SMBA 12 batch ITM college. Malad Presenter: Abhay Jain, Swapnil Akewar, Pratik Shetty, Sujith Bangera, Hetal Shah, Hardik Mashroo. Sawan Serial

2. “The art is not making money , but in keeping it”
MONEY

3.  Rule No 1: Never Loose Your Money on Tax.Rule No 1: Never Loose Your Money on Tax.
 Rule No 2: Don’t invest just for saving taxRule No 2: Don’t invest just for saving tax
look for returns.look for returns.
SavE YOUR tax

4. 0%
10%
20%
30%
0%
10%
20%
30%
New Income tax slab for a.y 2012-13
(financial year 2011-12)
Men (Below 60)Men (Below 60)
Women (Below
60)
Women (Below
60)

5. tax CaLCULatION
Annual Package = 10,00,000
Monthly = 83,334
Working:-
Upto 1,80,000 = No tax
(+)
1,80,000 to 5,00,000 (10%) = 32,000
(+)
5,00,000 to 8,00,000 (20%) = 60,000
(+)
More then 8,00,000 (30%) = 60,000
1,52,000

6. 80G80G80G80G
tax SavING INvEStMENt SECtIONS
80C80C80C80C
80E80E80E80E
80D80D80D80D
80U80U80U80U

7. SECtION 80C
 Inserted from 2006-07 onwards.
 The maximum amount deductible under section 80C,80CCC
and 80CCD cannot exceed rs 1,00,000.
 Deduction only to an individual or a Hindu undivided family.
 There are many schemes that are listed by the Income Tax
department.

8. 80C (LIfE INSURaNCE)
 Your Life cover Premium is eligible for a tax deduction up to 1 Lakh.
 The Premium paid should be 20% or less of the sum insured.
 Premium towards your self, spouse or your children gets included.
 Returns on life insurance %%%%%%%%%%%%%
Tax benefit under section 80C and 10(10D)

9. 80c (unit linked insurance
lan)
 ULIP’s Premium is eligible for a tax deduction up to 1 Lakh.
 The Premium paid should be 20% or less of the sum insured.
 Premium towards your self, spouse or your children gets included.
 Returns on Ulips %%%%%%%%%%%%%
Tax benefit under section 80C and 10(10D)

10. 80c (life insurance and
)

11. 80c (public provident
fund )
 It is the Long term debt scheme of the Government of India.
 Scheme is for 15 Years and interest rate is 8.6% (w.e.f 1/12/2011)
 Annual investments limit has been increased from 70,000 to
1,00,000.
 If a loan taken from PPF account ,interest rate is 2% against 1%
at present.

12. 80c (eMploYee provident
fund)
 EPF is compulsory deduction from salary by employer for there
employee.
 Every month12% Deducted from your Basic salary.
 Interest rate of 9.5% monthly cumulative best avenue in low
risk category.
 Eligible only if salary is above 6500 per month.
 Interest income is not taxable.
 If you withdraw EPF before 5 years the amount is taxable.

13. 80c (5 Years tax savings
deposit)
 Deposits booked by an individual or HUF for 5 yrs up to rs 1,00,000
 Interest on a Quarterly basis is 8.25% p.a and for senior citizen 8.75%.
 Multiples of rs.100/-
 Monthly or Quarterly interest payout option is available.
 No partial / premature withdrawal allowed.
 Sweep in not allowed.
 In the case of joint holder deposit ,deduction only to 1st
holder.

14. 80c (tuition fees)
 A Parents can claim a deduction on payment made for tuition
fees to any Universities, College, School or educational institutional.
 Deduction on payment towards tuition fees claimed up to
Rs1,00,000.
 Payment of fees to play schools or creches will be allowed.
 Fees for admission are excluded from amounts eligible for deduction.
 The deduction is allowed only for two children.
 Deduction is available of paid basis.
 Adopted Child’s tuition fees is also eligible for deduction

15. 80c (national savings
ertificate)
 This Government-backed security is available at post offices and
gives an interest rate of 8% , compounded half-yearly (till Nov 2011).
 The interest income is entirely taxable but no TDS.
 NSC is the only small saving scheme wherein interest for the first five
years is eligible for a deduction under section 80C.
 NSCs are good for those in lower tax slabs with an investment
horizon of six years.
 The 5-year NSC will carry a rate of interest of 8.4 per cent against 8
per cent at present. The 10-year NSC will offer 8.7 per cent.

16.  Illustration:
 Example: You invest Rs 1,00,000 in an NSC on April 1,
2010. Interest on this investment for each year is shown
in the following table:
 April 1, 2010 Initial investment 100,000
Mar 31, 2011 interest for Yr 1: 8,160
Mar 31, 2012 interest for Yr 2: 8,830
Mar 31, 2013 interest for Yr 3: 9,550
Mar 31, 2014 interest for Yr 4: 10,330
Mar 31, 2015 interest for Yr 5: 11,170
Mar 31, 2016 interest for Yr 6: 12,070
Total interest 60,110
Total value of investment: 1,60,110
80c (national savings
ertificate)

17. 80c (NatioNal saviNgs
ertificate)
 10-Year National Savings Certificate (IX-Issue), 2011 is being launched from
Dec 1, 2011.
 The major highlights of this scheme are as follows:-
i) Investments in Certificate will earn Interest at the rate of 8.7% p.a.
compounded semi-annually.
ii) On investment of Rs.100,the depositor will get Rs. 234.35 on maturity of
Certificate.
iii) This Certificate will be available in the denominations of Rs. 100, Rs. 500,
Rs. 1000, Rs. 5000 and Rs. 10,000.
iv) There is no upper limit for investment in the Certificate.
v) This Certificate can be transferred from a post office where it is registered to
any other post office and it can be pledged as a security.

18. 80c (rePaYMeNt of HoUsiNg
aN)
 The Equated Monthly Installment (EMI) that you pay every
month to repay your home loan consists of two components –
Principal and Interest.
 Principal component – Sec 80C.
 Stamp Duty and Registration Charges for a home

19. 80c (eqUitY liNked saviNgs
HeMe)
 ELSS is mutual fund products and carry market risk.
 ELSS comes with a 3 year locking period.
 Choice between dividend option, growth option and Dividend
re-investment option.
 Investments up to Rs 1,00,000 qualify under section 80C.
 The dividends earned and returns at maturity are also tax-free
under section 10(10D).

20. sec 80ccc
(Contribution to Pension Funds)
 Section 80CCC provides deductions from gross (total) income for
amounts paid or deposited by the assessee to any annuity plan of
Life Insurance Corporation of India or any other insurer for receiving
pension from the fund referred to in clause (23AAB).
 The deduction is available to an individual who is resident or non-
resident, Indian citizen or foreign citizen.
 The maximum amount deductible under section 80C is Rs. 1,00,000.
Also the total amount of deductions under sections 80C, 80CCC and
80CCD is Rs. 1,00,000.
 If deduction is claimed under 80CCC, pension received will be
taxable in the hands of assessee or the nominee in the year of
receipt.

21. sec 80ccd
(Contribution to Pension scheme of central govt)
 Deduction is allowed to an individual employed by the
Central Government or any other employer on or after the
1st day of January, 2004, has in the previous year paid or
deposited any amount in his account under a pension
scheme notified or as may be notified by the Central
Government.
 However, the deduction is limited to 10 per cent of his
salary in the previous year.
 The maximum amount deductible under section 80C is
Rs. 1,00,000. Also the total amount of deductions under
sections 80C, 80CCC and 80CCD is Rs. 1,00,000.

22. sectioN 80cce
 As per this section, the maximum amount of deduction that
an assessee can claim under Sections 80C, 80CCC and
80CCD will be limited to Rs 100,000.
 In other words, Section 80CCE is not the separate
deduction. It says that the Maximum limit for deduction under
all the 3 laws means,
- Section 80C
- Section 80CCC &
- Section 80CCD is combinely Rs.1,00,000

23. sectioN 80ccf
 Section 80 CCF has been introduced for the assessment year 2011-12
and 2012-13.
 Under this section and individual or a Hindu undivided family can claim
a deduction for the investments done in notified long-term infrastructure
bond.
 The Quantum of deduction cannot exceed rs.20,000 which is over and
above the existing overall limit of deduction on savings of upto rs 1 lakh
under section 80C,80CCC and 80CCD.
 Deduction under this section will be available only for assesment year
2011-12 and 2012-13.
 Returns offer are 9% in IDFC and L&T for 10 years bond.

24. sectioN 80d

25. Section 80D
• Payment of Mediclaim Insurance Premium
• Eligible to Individual or HUF.
• Amount of deduction –
– Basic deduction ( Max 15k ).
– Additional 5K for senior citizen.
By Assesse
By Cheque
For whom – Individuals
own health, spouse,
Parents & dependent
Children.
HUF – Any Member
To Whom GIC or
other Approved
Insurance CO

26. Section 80DD
• Eligible to Individual or HUF.
• Treatment & Maintainance of HDR
• Amount of deduction –
– Disablity Deduction
– < 40% No Deduction
– 40 to 80% Rs 50K
– > 80%- Severe Disability Rs 100K
• Should spend on treatment or should deposit some amount
with LIC or other insurer.
• Furnish a certificate of disability.

27. Section 80DDB
• Eligible to Individual or HUF.
• Treatment of specified diseases
• Amount of deduction –
– Disablity Deduction
– < 40% No Deduction
– 40 to 80% Rs 50K
– > 80%- Severe Disability Rs 100K
• Should spend on treatment of specified disease.( Rule
11DD)
• Furnish a certificate of disability.

28. SECTION 80E

29. Deduction in respect of interest on loan taken for higher education
Conditions:
• The assessee should be an individual.
• Any amt paid by an assessee in the previous year for interest of loan
taken from any bank OR FI’s for pursuing higher education.
• It includes only interest paid and not repayment of loan.
• While computing, the total income of such assessee will be allowed @
100% of interest paid on loan and not repayment of loan.
• Such deduction is allowable from GTI of initial assessment year and for
7 successive years or until the interest is paid in full whichever is earlier
SECTION 80E

30. SECTION 80u
 Assesses is himself handicapped.
 Eligible for Resident Individual
 Amount of Deduction
Normally Rs 50k flat deduction.
Severe Disability – Rs 100K flat deduction
 Amount of deduction –
Disablity Deduction
< 40% No Deduction
40 to 80% Rs 50K
> 80%- Severe Disability Rs 100k
 Furnish a certificate of disability.

31. 3 TypE Of pEOplE

32. PropertyProperty
Saving Today’s money …To Provide For Tomorrow’s Security!
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